Theravance Inc. Stock Downgraded (THRX)
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income has significantly decreased by 44.3% when compared to the same quarter one year ago, falling from -$21.22 million to -$30.63 million.
- The share price of THERAVANCE INC has not done very well: it is down 19.71% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has declined marginally to -$19.33 million or 0.76% when compared to the same quarter last year. Despite a decrease in cash flow THERAVANCE INC is still fairing well by exceeding its industry average cash flow growth rate of -14.74%.
- THERAVANCE INC's earnings per share declined by 27.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, THERAVANCE INC continued to lose money by earning -$1.17 versus -$1.36 in the prior year. For the next year, the market is expecting a contraction of 14.5% in earnings (-$1.34 versus -$1.17).
- The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
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